May 17
Market Highlights May 30, 2011: Weak U.S. Economic Data Back Trigger collapsed Dollar
Monday, 30 May 2011 05:41

A series of weak U.S. economic data took the dollar continues to weaken against other major currencies in the trading session Friday (27 / 5). Pending Home Sales data show a decrease 11.6 percent in April, far lower than economists predicted earlier. Similarly Personal Spending data, missed expectations.

Nearing the end of the program schedule quantitative easing volume II of the Federal Reserve, U.S. economic data would indicate slower growth. Earlier, on Thursday (26 / 5), Preliminary GDP data showed the U.S. economy grew only 1.8 percent in the quarter I.

Lack of these data fueled speculation that the U.S. economy may still need a stimulus to recover.

On the other hand, the market makers set aside themes debt crisis of the Euro Zone, at least for now. Comments and statements by European officials to help remove some concerns about the possibility of debt restructuring Greece.

Last Friday, Governor of Central Bank of Greece, George Provopoulos said that Greece would be able to meet its obligations if obedient to the savings program as required by the IMF and the European Union.

Against the dollar, the euro rose to 1.4307 observed before and then closed at 1.4290 in late trading session Friday, rose about 1.1 percent more than the previous day's closing level.

Similarly pounds, gained about 0.7 percent to 1.6510 against the dollar, its highest level in 2 weeks new.

Both the euro and sterling supported by the factor of interest rate differentials. Slowing U.S. economic growth will give the reasons for the Federal Reserve to hold interest rates for a longer period of time. While the Bank of England, as the ECB, implied more focused on the problem of rising inflationary pressures, which means the opportunity to raise interest rates.

However, the star on last Friday's trading session was the Swiss franc. Among developed countries, Switzerland is the country's most stable economies. In the middle of Euro zone debt crisis and the problem of slowing U.S. economic growth, the Swiss franc are increasingly attracting the interest of market participants.

Versus the euro and the dollar, the Swiss franc continues to strengthen to a new record in history. Against the dollar, Swiss franc gained nearly 2 percent closing at 0.8479. Previously, the Swiss franc rose to a record could be monitored only 0.8463 per dollar.

Meanwhile, the world gold price also continued rising until it reaches a new high level in 3 weeks. The spot price of gold rose to $ 1,538.00 per troy ounce before closing at 1533.20 at the end of the session. As the Swiss franc, gold also benefited from the economic problems facing the euro zone and the U.S..

Also observed weaker dollar versus the yen and Australian dollar. Against the yen, the dollar closed down about 0.6 percent at 80.82. While the Australian dollar closed 0.6 percent stronger at 1.0699 against the U.S. dollar range.

 

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